Business
Biometric Solutions Provider BIO-key Raises $2.1M in Private Placement of a Senior Secured Convertible Note
WALL, N.J., May 07, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), an innovative provider of biometric authentication and security
About this update from Bio-key International, Inc.
[{"type":"text","content":"WALL, N.J., May 07, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), an innovative provider of biometric authentication and security solutions, today announced the sale of a $2,415,400 Senior Secured Convertible Note to Lind Global Macro Fund, LP. At closing, $2.1 million was funded, with the proceeds to be used for general working capital purposes, including repayment of outstanding indebtedness.\n The Note is secured by a first priority lien on substantially all of BIO-key’s assets and properties and is convertible at the option of the Investor into shares of BIO-key common stock at a fixed conversion price of $1.16 per share. BIO-key CEO Michael DePasquale commented, “BIO-key completed this funding to ensure that we have sufficient financial resources to fund our business and execute on our growth strategy. We believe this financing structure, including its above-market conversion price and 12 month repayment schedule, provides an attractive source of capital for our company, particularly as we start the deployment of our recently announced contracts in Africa and deal with the current global coronaviris pandemic.” The principal amount of the Note is due and payable in five equal monthly installments of $268,333 beginning seventh months after the funding date with the balance due 12 months after the date of funding. BIO-key has the right to prepay the Note in full at any time without penalty, in which case the Investor will have the option of converting 25% of the outstanding principal amount of the Note into BIO-key shares at $1.16 per share. Additionally, the Investor was issued a five-year warrant to purchase 1,900,000 shares of common stock at a fixed exercise price of $1.16 per share. The Warrant is immediately exercisable. Maxim Group LLC served as placement agent in connection with the forgoing transaction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. About BIO-key International, Inc. (www.bio-key.com)BIO-key is revolutionizing authentication with biometric solutions that enable convenient and secure access to d...